Perrigo Shares Surge to Decade High On Buyout

Shares of Perrigo Co. jumped to their highest point in a decade Monday after the company said it would buy Orion Laboratories for $48 million in cash, expanding its market in Australia and New Zealand.

Perrigo, based in Allegan, Mich., makes over-the-counter drugs. Orion, based in Australia, is a privately held supplier of nonprescription, store-brand drugs. Also, Orion makes and distributes pharmaceutical products to hospitals.

Perrigo shares jumped $1.60, or 3.2 percent, to $51.17 in afternoon trading. Earlier, the stock reached $51.33, its highest point in a decade.

Perrigo said the addition of Orion will boost annual sales by more than $30 million and add to earnings in the first year.

"The acquisition of Orion expands our global presence, complements our existing business and increases value for our shareholders," said Chairman and CEO Joseph C. Papa, in a statement. "By leveraging Orion's product pipeline and local marketing and distribution expertise, Perrigo is expanding its ability to meet the world's growing need for quality, affordable health care."